What is Revenue Management?

Three versions of revenue-yield management

Academic

Systems & procedures to maximize results from the sale of a product or service in more or less fixed supply, whose revenue producing ability diminishes with time.

Conceptual

Revenue management is the art and science of predicting real-time customer demand at the micro-market level and optimizing the price and availability of products.

How we see it...

Selling the right room, to the right customer, at the right time, for the right price, at the right length of stay, from the right source. Simple, right? This is where we come in.

You can see there are several definitions to Revenue-Yield Management however we like to take it a step further the whole process through a 4-step evaluation:

1.

Understand your seasonality and learn about your competitors.

2.

Implement strategies against those seasons and competitors.

3.

Develop the culture of Revenue Management within the organization.

4.

Execute, track, evaluate, adjust and start-over at number 2.

This is an on-going process that we have here at RevOptimum with years of experience and knowledge to support the effort. We apply these principles of revenue yield management until we get the right recipe for success. Here at RevOptimum we like to take the symbol of hospitality one step further; crack it open, plant the seed of hotel revenue management and watch the knowledge come flowing out! Whether 5 or 500 to 1000 plus rooms or units, whether your independent hotel is on this side of the Earth or that side – RevOptimum can help, contact us today for a FREE Hotel Revenue Management Audit and Consultation.